GST cuts, festive demand led to record passenger vehicle dispatches in Oct: SIAM
With the reduced GST rates becoming effective from September 22, October witnessed a strong uptick in vehicle registrations, resulting in a notable rise compared to wholesales.
Robust festive demand, aided by price cuts owing to GST rate rejig, led to record passenger vehicle deliveries, as well as two- and three-wheeler dispatches, from companies to dealers in October, industry body SIAM said on Friday.
Total passenger vehicle wholesales in October rose to 4,60,739 units, an increase of 17% compared with 3,93,238 units in October last year.
Similarly, two-wheeler sales rose to 22,10,727 units during the month, an increase of 2% against 21,64,276 units in the year-ago period, the Society of Indian Automobile Manufacturers (SIAM) said in a statement.
Scooter sales were up 14% year-on-year at 8,24,003 units last month as compared with 7,21,200 units in October 2024.
Motorcycle dispatches, however, declined 4% year-on-year to 13,35,468 units in October. Three-wheeler dispatches rose 6% year-on-year to 81,288 units in October.
"Passenger vehicles, two and three-wheeler segments posted their highest ever dispatches to dealers in October, primarily buoyed by the festive demand and the recent GST rate reduction, despite being constrained due to certain logistic limitations," SIAM Director General Rajesh Menon said.
With the reduced GST rates, October witnessed a strong uptick in vehicle registrations, resulting in a notable rise compared to wholesales, he added.
With the festive season ending, electric vehicle (EV) makers saw a jump in sales during October as consumers rushed in to cash in on attractive discounts and offers. This led to a 29.8% jump in total sales of electric two-wheelers during this period.
In October, Chetak-maker Bajaj Auto toppled TVS Motor Company’s market lead position—a spot the firm held on for six months this year—to sell 29,567 units, grabbing a 21.7% of the E2W market share.
This is a shot in the arm for the company that saw its sales dip in the months following the rare earth magnet supply constraint. The company had, on multiple occasions, flagged that it would be hit by thinning supplies of these critical components.
Bajaj Auto had previously been the market leader in February and March this year, capitalising on the widening consumer base and thinning market share of Bhavish Aggarwal-led Ola Electric, which was the E2W market leader until November last year.
(With inputs from PTI)